This article is written by Khushboo Sharma, LLB student of Campus Law Centre, Delhi University during her internship with LeDroit India.
Introduction
As there is a rise in large scale industries/factories, it has become important to give a light to the rights of the factory workers. Regarding the right of the workers and working conditions in factories, Major Moore, who was an Inspector-in-Chief of the Bombay Cotton Department, had raised the questions in his report 1872-73. The first Factory Act was enacted in 1881; but it has been amended many times. So, the Factory Act of 1934 replaced all the previous legislations in respect to factories. It was being revised many times and aimed to cover the ambits of cleanliness, over time payments and health; but it revealed a lot of defects.
Therefore, Factories Act of 1948 came into light for amending the legislation related to labor in factories and it was passed by the Constituent Assembly on August 28, 1948. It received the Governor’s assent on 23 September 1948 and came into force on April 1, 1949.The Act of 1948 later has been amended in the year 1987 as a memorial to the victims of Bhopal. There are a total of 120 Sections and 3 Schedules mentioned in the Factories Act of 1948.
Preamble
[63 of 1948]
An Act to consolidate and amend the law regulating labour in factories.
There are total of 120 sections consists of 11 chapters and 3 schedules mentioned in the Factories Act of 1948.
Schedules
- First Schedule inserted by the Act 20 of 1987, consists list of industries involving hazardous processes, which involves 29 categories, which involves a risk of hazardous process. As mentioned in section 2(cb) of Factories Act (1948):
“hazardous process” means any process or activity in relation to an industry specified in the First Schedule where, unless special care is taken, raw materials used therein or the intermediate or finished products, bye-products, wastes or effluents thereof would—
- cause material impairment to the health of the persons engaged in or connected therewith, or
- result in the pollution or the general environment
Provided that State Government may, by notification in the Official Gazette, amend the First Schedule by way of addition, omission or variation of any industry specified in the said Schedule.
- Second Schedule inserted by the Act 20 of 1987, consists list of permissible levels of certain chemical substances in work environment. As mentioned in section 41F of Factories Act (1948):
41F. Permissible limits of exposure of chemical and toxic substances.—
(1) The maximum permissible threshold limits of exposure of chemical and toxic substances in manufacturing processes (whether hazardous or otherwise) in any factory shall be of the value indicated in the Second Schedule.
(2) The Central Government may, at any time, for the purpose of giving effect to any scientific proof obtained from specialised institutions or experts in the field by notification in the Official Gazette, make suitable changes in the said Schedule.
- Third Schedule inserted by the Act 20 of 1987, consists list of notifiable diseases like toxic anaemia, occupational cancer, anthrax, etc; gives the list of 29 notifiable diseases. As mentioned in section 89 & 90 of Factories Act (1948):
89. Notice of certain diseases.—
(1) Where any worker in a factory contracts any disease specified in the Third Schedule, the manager of the factory shall send notice thereof to such authorities, and in such form and within such time, as may be prescribed.
(2) If any medical practitioner attends on a person who is or has been employed in a factory, and who is, or is believed by the medical practitioner to be, suffering from any disease specified in the Third Schedule, the medical practitioner shall without delay send a report in writing to the office of the Chief Inspector stating-
(a) the name and full postal address of the patient,
(b) the disease from which he believes the patient to be suffering, and
(c) the name and address of the factory in which the patient is, or was last, employed.
90. Power to direct enquiry into cases of accident or disease.—
(1) The State Government may, if it considers it expedient so to do, appoint a competent person to inquire into the causes of any accident occurring in a factory or into any case where a disease specified in the Third Schedulehas been, or is suspected to have been contracted in a factory, and may also appoint one or more persons possessing legal or special knowledge to act as assessors in such inquiry.
(3) The person holding an inquiry under this section shall make a report to the State Government stating the causes of the accident, or as the case may be, disease, and any attendant circumstances, and addition any observations which he or any of the assessors may think fit to make.
(4) The State Government may, if it thinks fit, cause to be published any report made under this section or any extracts therefrom.
(5) The State Government may make rules for regulating the procedure at inquiries under this section.
Importance
The Factories Act of 1948 is considered to be a beneficial legislation as it:
- Safeguards the interests of working labour,
- Ceases their exploitation,
- Provides healthy environment,
- Takes care of their health, hygiene and welfare at their places of work,
- Enacts special provisions for young persons, women and children who work in the factories,
- Creates obligations, duties and responsibilities factory manager as well as on the occupier of the industry;
- Maintains the plants and machinery to ensure the safety of workers,
Applicability
As per section 2(m), this act is applicable to any factory premises:
- whereon ten or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on with the aid of power, or is ordinarily so carried on, or
- whereon twenty or more workers are working, or were working on any day of the preceding twelve months, and in any part of which a manufacturing process is being carried on without the aid of power, or is ordinarily so carried on, but does not include a mine, or a mobile unit belonging to the armed forces of the Union, railway running shed or a hotel, restaurant or eating place.
Authorities Involved:
As per section 40-B, it is the duty of the occupier to appoint the safety officers.
Occupier as per section 2(n), means the person, who has an ultimate control over the affairs of the factory.
Section 40-B – Safety Officers: In every Factory:
- wherein one thousand or more workers are ordinarily employed, or
- wherein, the opinion of the State Government, any manufacturing process or operation is carried on, which process or operation involves any risk of bodily injury, poisoning or disease, or any other hazard to health, to the persons employed in the factory, if required by the State Government by notification in the official Gazette.
As per section 49 welfare officers:
49. Welfare officers.—
(1) In every factory wherein five hundred or more workers are ordinarily employed the occupier shall employ in the factory such number of welfare officers as may be prescribed.
The Factories Act and the rules framed thereunder are enforced by respective states/UTs; through the office of Chief Inspector of Factories under the Labour Department of the State Government/UTs.
Dispute Resolution:
If the disputes arise between workers or employee and employer, then it can be resolved by bilateral negotiations. If the parties do not succeed in negotiation, the only way left is by adjudication with a reference of the appropriate government. There are various methods to resolve the issue as:
Conciliation and Mediation:
It is a process under which a third party gets involved and assists the disputed parties to carry out negotiation between them. This process has been executed by
- the conciliation officers, who work in the labour department
- the conciliation board, consist of a chairman, two to four members as the representatives of the employers and the employees, which are appointed on a reference of the government or parties may also recommend.
Voluntary Arbitration:
Voluntary means self willingness and consent. Arbitration means a procedure where a third party gets involve in the form of an arbitrator or a board of arbitrators. Voluntary Arbitration means the disputed parties wilfully agrees to the decision taken by a single arbitrator or a board of arbitrators without any outside compulsion.
The case of Gujarat Steel Tubes Ltd. v. Gujarat Steel Tubes MazdoorSabha, the under this case, Supreme Court gave exceptional powers to the arbitrator regarding cases of discharge of workmen as a form of punishment. By this case, it has been established that the arbitrator by using appellate jurisdiction may combat the employer’s decision for his employees.
Adjudication:
Adjudication may replace conciliation process totally, only if the conciliation fails to settle the disputes between the parties. Adjudication may also be stated as the compulsory settlement of the industrial dispute in concern by labour courts, industrial tribunals and national tribunal as provided by the Industrial Dispute Act, 1947.
The case of Mathura Refinery MazdoorSangh v. Union of India, the apex court has separated the dispute settlement mechanism under the Industrial Dispute Act, 1947 as a separate entity. The apex court gave significance to the tribunals to deal with the industrial dispute and directed the government to take advice from tribunals itself.
Penalties
If the rules or any provisions mentioned in the Factories Act 1948 have been violated, it will be treated as an offence. The following penalties mentioned below may be imposed on the defaulter:
- imprisonment for a term which may extend to one year;
- fine which may extend to 5 lakh rupees;
- both fine and imprisonment
A fine of 500 rupees may be imposed on the worker if he misuses the rules related to workers’ health and safety or in order to discharge his duties.
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